自主学习材料 - chapter 6.docVIP

Select the appropriate response. 1. Under which inventory cost-flow assumption would the most recent cost be assigned to the Inventory account on the balance sheet? (LIFO?? or?? FIFO) 2. Under the weighted-average inventory method, the average unit cost of inventory is determined by dividing the sum of the individual purchase prices by the number of purchases which occurred during the year. (right?? or?? wrong) 3. The specific identification method would be used for inventory which involves many similar homogeneous items. (true?? or?? false) 4. During a period of rising prices, which inventory method would tend to minimize tax liability? (FIFO?? or?? LIFO) 5. During a time of rising prices, the LIFO technique causes inventory on the balance sheet to bear what relationship to its fair value? (greater than?? or?? less than) 6. Which inventory method produces the same results under both the perpetual and periodic inventory systems? (FIFO ? or?? LIFO) 7. In determining inventorys lower-of-cost-or-market valuation, market is defined as: (sales price?? or?? replacement cost) 8. The lower-of-cost-or-market rule can be applied item-by-item or to the aggregate inventory. (true?? or?? false) 9. Recoveries of value for inventory previously reduced by lower-of-cost-or-market rule adjustments should be recognized. (yes?? or?? no) 10. Overstating ending inventory would have what effect on income for that year? (overstate?? or?? understate) 11.The specific accounting treatment for a long-term investment depends on the type of security purchased, not the intent of the investment.(true?? or?? false) 12.In evaluating the correct accounting choice (e.g., held-to--maturity, etc.) for a particular investment, which of the following is most apt to be regarded as the default choice?(trading securities?? or?? available for sale securities) 13.The biggest difference between accounting for trading securities and available for sale securities has to do with:(the asset measurement?? or?? how c